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    Parking option is best for the employee on a monthly basis

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    A downtown employee is looking for the best option for parking a car during a 5 day work week. One parking garage offers unlimited parking at a flat rate per month. Another garage offers an hourly rate for parking. Which option is best for the employee on a monthly basis?

    Consider that the employee works standard 8 hours a day.

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    Solution Preview

    Let us say,

    F = Flat rate per month that offers unlimited parking (garage 1)
    H = Hourly rate for parking (garage 2)
    C = Monthly parking cost with a garage

    where F, H and C are expressed in same money unit.

    In case of garage 1,
    C = F ------ Equation 1

    Consider the case of garage 2 now. It is already specified that employee is working 5 days/week, and 8 hours/day.

    In a week, the employee works for 8*5=40 hours.

    Different months will have different working days, due to
    - number of days in month, and
    - number of Saturday/Sunday (assumed standard two days holidays/week) in month.

    So it will be better to compute average parking cost per month in this case.

    There are 52 weeks in ...

    Solution Summary

    As nothing is specified about number of workdays in a month, and number of workdays can vary across months, solution computes average monthly cost for garage 2 considering 52 weeks/year. Solution also describes how graphs can be drawn to solve this problem graphically.